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Govts reliance on regressive indirect taxes is increasing
March, 25th 2016

The chart shows that the share of direct taxes as a proportion of gross tax revenues of the central government has been coming down since 2013-14.

Direct taxes in 2015-16 amounted to just 51% of gross tax revenues, in sharp contrast to 2009-10, when they reached a high of 58.9%.

That means the share of indirect taxes is going up. Indirect taxes are considered as regressive, because they apply equally to the rich and the poor, without any consideration for income levels.

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